Why does not Tariko offer to buy the remaining 80% of the company, even an offer at $3 a share would make most of us happy. He could get the 80% of the company for only `$200M, any thoughts/reasons why he would not do that?
Actually, the CEDC Board is playing a game of chicken with Mr. Tariko & Russian Standard. They have brought Houlihan Lokey on board in order to send a message to Tariko that they will declare bankruptcy if he doesn't came to the table with either:
1) A full buyout offer
2) A financing deal
Ultimately, they are holding the ~$100 million - $200 million investment (depending on who you talk to) that Tariko & Russian Standard have made in CEDC as hostage.
Quite frankly, I have never seen anything like this as this is beyond professional and unfathomable. I simply do not understand why they (CEDC Board, Tariko, & Kauffman) can discuss this behind closed doors, for CEDC's stock price would be closer to $3.00 if these back-and-forth letters didn't come out.
Anyway, Houlihan Lokey has an interesting PDF that you can download from their website called "BUYING AND SELLING THE TROUBLED COMPANY" I plan on reading it over the weekend so that I can get the play-by-play on what HL is getting paid by the CEDC Board of Directors to do.